The Payment Terms DLC document serves as a crucial instrument in international trade transactions under Pakistani jurisdiction. It is primarily used when parties require a secure payment mechanism through banking channels, particularly in cross-border transactions where the buyer and seller need assurance of payment and delivery respectively. The document incorporates essential elements required by Pakistani banking regulations, including compliance with the State Bank of Pakistan's guidelines, Foreign Exchange Regulation Act requirements, and international banking practices under UCP 600. It details specific requirements for document presentation, payment terms, bank obligations, and compliance procedures, making it an indispensable tool for businesses engaged in international trade while ensuring adherence to both local and international banking standards.

1. Parties: Identification of all parties involved: Applicant (Buyer), Beneficiary (Seller), Issuing Bank, and any Advising/Confirming Banks

2. Background: Context of the underlying transaction and purpose of the DLC

3. Definitions: Key terms used throughout the document including banking, trade, and technical terms

4. Letter of Credit Details: Specific details of the DLC including type, amount, currency, and expiry date

5. Payment Terms: Detailed conditions for payment, including required documents, presentation period, and payment timeline

6. Document Requirements: Comprehensive list of required documents and their specifications (e.g., bills of lading, commercial invoices, certificates)

7. Bank Obligations: Responsibilities and obligations of all banks involved in the transaction

8. Compliance Requirements: Regulatory compliance requirements including foreign exchange regulations and trade controls

9. Fees and Charges: Breakdown of all applicable banking charges, commission, and who bears these costs

10. Amendments: Process and conditions for making amendments to the DLC

11. Force Majeure: Provisions for unforeseen circumstances affecting the DLC operation

12. Governing Law: Specification of applicable laws and jurisdiction